The White Pine news. [volume] (Treasure City, Nev.) 1868-1906, 1887-12-10
A NEVADA TRUST COMPANY.
An Eastern Method Being introduced
In This State.
carson Appeal

lle estADllSnment OF a loan anO IN
vestment company in this State marks
a new era in its history. Such COM
panies are very popular in the East,
and the State of Kansas, with its I'M
paralelled advancement, was almost
wholly built by such company.
There has been considerable in the
papers of this State regarding the
scheme, but the matter has not as yet
been made quite plain to the public.
The object of the Company is to bring
capital into this State to assist in de.
veloping it.
The basis on which the Company
does business is mortgages on improv-
ed farms. The proposition is TO fur
nish medium by which outsiders can
invest in these mortgages, and have
the interest regularly collected with
out the bother of personal supervision.
Another proposition is to lower the
rate of interest in this State from Is
cent. per annum to 10 per cent. Under
the old system the man who mortgages
his property was almost sure to lose It,
as the high interest eats up the prin-
cipal.
The method Of doing business in this
Company can be easily illustrated:
John Smith has a ranch in Carson
Valley worth $4,000 and wishes to
borrow $4,000 on it. He applies to
the Nevada California Loan and In
vestment Company, and they send an
appraiser 10 his ranch, loaning on %
per cent. Of its appraised value at or
10 per cent, as the case may be; the
larger the loan the lower the percent
age of lnterest. Having advanced the
money they deposit the mortgage in
the hands Of their agent in San Fran
cisco, which is the California Title
Insurance and Trust Company; also
bonds to the amount of $1,000. The
mortgage being deposited with the
California Trust Company they en-.
dorse the bond, holding themselves
responsible for ITS payment.
Now there comes a man from New
York seeking investment ut 6 per cent,
aud purchases the bonds, knowing
them to be sound, as the payment IS
guaranteed. These investments are 50
common on this Coast that Eastern
men readily invest, and even insurance
companies, the most cautious OF all
investors. purchase these bonds.
The investor in these bonds is really
the man who advances the money on
the mortgage and the Neyads Com
pang is simply acting as the agent on
commission but the bondhulder Is re-
ieyed of all the bother of placing the
mortgage, aud is willing to take the q
per cent. instead of 8 u 10, to be rid
Of the details. 1t is far to assume
that tie rancher who borrows the
money will put that money right into
his property. improving II, and there
bv approaching the value of tie So
CURLY. The Trust Company OF IAN
Francisco is protested By having the
mortgage in its hand, and the result Is
that Eastern investors are really send
ING money into this State To improve
it. Men who are now paving IS per
cent. per annum in this State will ap-
preeiate this lowering Of interest 1t
will do away with the depression IN
money circles, and begin the boom
which has been So long edging this
way. The men who are at the head
of the Company are ranked among its
most solid and reliable business men.
They need no endorsement from any
hadu